Question 1

Is PEO licensing required in Montana?

Accepted Answer

Yes. Montana licenses employee leasing companies under the Employee Leasing Company Licensing Act, MCA Title 39, chapter 8. MCA 39-8-204 requires a license from the Department of Labor and Industry, with the license valid for one year from issuance.

Question 2

What bond does a PEO need in Montana?

Accepted Answer

Under MCA 39-8-207, the department withholds the license until the applicant furnishes a $300,000 surety bond, a $300,000 certificate of deposit from an insured Montana bank or savings and loan, an irrevocable letter of credit in the same amount, or other security acceptable to the department.

Question 3

How does renewal work for PEOs in Montana?

Accepted Answer

Renewal is annual. The license is valid for one year from the date of issuance, the renewal application must be filed at least 30 days before expiration, and the renewal fee is $700.

Question 4

What is the SUI taxable wage base in Montana?

Accepted Answer

Montana's 2026 taxable wage base is $47,300, computed as 80% of the 2024 average annual wage of $59,106.64. New employers pay the average contribution rate of their industry for their first three years, with a 2026 statewide average new employer rate of 0.95%.

Question 5

What is the minimum wage in Montana?

Accepted Answer

Montana's minimum wage is $10.85 for 2026, adjusted annually for CPI-U. Montana imposes no paid sick leave or paid family leave mandate.

Question 6

How does workers' compensation work with a PEO in Montana?

Accepted Answer

Montana operates the state compensation insurance fund (Montana State Fund), established by MCA 39-71-2313. It is a competitive fund that competes head-to-head with licensed private carriers rather than holding a monopoly, so a PEO can insure leased employees with the State Fund or any private carrier.

Montana PEO FAQs: Licensing, Compliance, and Costs

Frequently Asked Questions